- A Delaware court has reportedly ruled in favor of McDonald’s Corp MCD board members, saying they did not mishandle sexual harassment and misconduct allegations.
- The ruling has overturned shareholders’ allegations against the board members of violation of duty, the WSJ reported.
- The shareholders complained of a boys’ club-type atmosphere at McDonald’s and alleged encouragement to hire young, attractive women to work in administrative roles.
- Delaware Chancery Court Vice Chancellor J. Travis Laster said the board took action on the sexual harassment complaints, the report added.
- Also Read: McDonald’s Cardi B And Offset Meal Promotion Irks Some Restaurant Owners
- “The pled facts do not support a reasonably conceivable claim against [the directors] for breach of the duty of oversight,” Laster said.
- The company, in 2019, fired CEO Stephen Easterbrook following a consensual relationship with an employee, violating company policy.
- Easterbrook was also accused of having undisclosed sexual relationships with other employees. Later he paid a fine in a settlement with the U.S. Securities and Exchange Commission.
- Also Read: McDonald’s Q4 Earnings Top Estimates; Expects Inflationary Pressures To Continue In 2023
- Price Action: MCD shares traded higher by 1.20% at $265.83 on the last check Thursday.
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